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A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state. Taxes consist of direct taxes and indirect taxes. “Pecuniary burden laid upon individuals or property to support the government a payment exacted by legislative authority”. Tax is not a voluntary payment or donation but an enforced contribution, exacted pursuant to legislative authority and is any contribution imposed by government whether under the name of VAT, Custom, Excise or other name. Tax is the main source of revenue of Bangladesh. So it is base point for Bangladesh economy to improve the country's infrastructure and other territory. After 1971 we receive many aid from foreign country but after 39 years of liberation war our country doesn’t progress a lot though we have more potentiality then any other country. Bangladesh inherited a system of taxation from its past British and Pakistani rulers. The system, however, developed based on generally accepted canons and there had been efforts towards rationalizing the tax administration for optimizing revenue collection, reducing tax evasion and preventing revenue leakage through system loss. Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means. The term tax mitigation is a synonym for tax avoidance. Its original use was by tax advisors as an alternative to the pejorative term of tax avoidance. Latterly the term has also been used in the tax regulations of some jurisdictions to distinguish tax avoidance foreseen by the lawmakers from tax avoidance which exploits loopholes in the law. Revenue collection has always been a problem in Bangladesh. People in Bangladesh want to get everything for free. So it is time to change that mentality. The problem is with the attitude and mentality.
drug trafficking etc. while a successful one avoids tax. Those who attempt to report illegal income as coming from a legitimate source could be charged with money laundering. So. Other time tax evasion can be used as a "one more nail in the coffin" by prosecutors by stating that if a person earns illegal income.) is required to report unlawful gains as income when filing annual tax returns. theft. Producers who collect VAT from the consumers may evade tax by under-reporting the amount of sales. those reasons are given below: Based on these concepts arise the pillars of Tax Protesters as well as Tax Resistance: Some of those attempting not to pay tax believe that they have uncovered interpretations of the law that show that they are not subject to being taxed: these individuals and groups are sometimes called tax protesters.Our country is mostly depended on Vat rather than Tax though tax is the main source of revenue collection of any country. Suspected lawbreakers have therefore been charged with tax evasion when there is insufficient evidence to try them for their non-tax related crimes. Tax resistors typically do not take the position that the tax laws are themselves illegal or do not apply to them (as tax protesters do) and they are more concerned with not paying for particular government policies that they oppose. Tax resistance is the declared refusal to pay a tax for conscientious reasons (because the resister does not want to support the government or some of its activities). In Bangladesh there are 2 million tax identification number (TIN) holder. Value Added Tax (VAT) has emerged as a modern form of consumption tax through the world. why people don't pay Tax there are some obvious reasons behind this. Evasion of Value Added Tax (VAT): During the latter half of the twentieth century. An unsuccessful tax protestor has been attempting openly to evade tax. s/he may also be guilty of tax evasion. 2 . Illegal income and tax evasion: Who earn income by illegal means (gambling. though it is unfortunate that most of the TIN holder don’t give the actual amount of Tax they have to pay to the government.
It is a biggest problem of our bureaucracy. The people think that if they disclose their actual amount they will suffer in the future by the government authorities and the others. of them take advantage and that leads to corruption. because they take a higher amount of money from the corporation. rules working procedure is not well developed. In fact they are afraid of tax collectors. One is. we have inconsistencies in our structure. It is defective because of two reasons. not all. broader environment of hostility between the tax-payers and the tax collectors conflict of interests in the NBR. rules. working procedures and overall tax structure It is an unfortunate factor to the Bangladeshi people that the structure. Client-bureaucracy interface Due to the interference there are a lot of complaints from the tax payers. the system has given too much discretion to the officers. Old structure of laws. Listening to the powerful people The tax officer pays more attention to the big corporation. many. Discretion among the amount There are a lot of discrimination between the actual amount of money the people have and the amount what they express. When a person want to give his tax the Tax officer asked for bribe so the ordinary people they become afraid of it if they don't give this they may suffer in the future for unavoidable situation. tax officials. Secondly. When a trader goes to pay his tax he makes a little attention by the officer. When a ordinary person wants to go pay his tax in NBR it is quite impossible for him to identify to whom his tax payment will concern. As a result. Inconsistencies structural There are lots of inconsistencies in the structure of the payment of tax.Defective systems The system is defective. Narrower the tax base The base of tax is much narrower because there are lots of critical factors in the bureaucracy so the time has changed but the pattern doesn’t change at all. 3 . Nothing is happening.
.The tax payers and the tax collectors have a lot of conflict among them. In the process. We want to get rich overnight by hook or by crook.000. In India it starts at Rupees 150. I personally feel it is very sad but my realization is that this is the truth. For women and those above 70 it starts at Taka 180.000 and for those above 65 at Rupees 225. defrauding the government. We are ready to do it as long as our bank account keeps going up. so he can quickly refer to a rule of a section of the law which obviously other can't. The higher tax rates in Bangladesh show that the Bangladeshis pay more tax than the Indians. The gap in the tax rates for men and women is also narrower than that of India. someone who has worked for income tax knows the income tax ordinance and rules. Lack of respect ness The government officer doesn't respect to the citizen though they are paid by the citizen's money but when they want to pay the tax the officer just treated them badly.000. in our country a TIN holder first appoint a lawyer for calculating his tax then he gives his tax at the Bank then also pay bribe to the tax collector for approving the payment so it is vary unfortunate for the people that they have to pay the more money for the payment. We don't do assessment of income tax returns. 4 .. Cultural problem Tax evasion is a cultural problem. Example.000. We the people just make the statement of our income. some times it is much higher then the actual tax payment. For women it starts at Indian Rupees 180.000. But decision making is a totally different thing. cheating the customers. Poor amount of direct tax collection The taxable annual income in Bangladesh starts at Taka 165. So the collectors also play a bigger role for the non payment of tax. The tax payers like an ordinary person it is quite difficult for him to make a proper adjustment in the tax payment so the tax collectors take the advantage and intentionally make a critical situation for the tax payer so that he can take bribe from the particular person. we don't mind trampling the rights and interests of others. We have to open the book. Corruption by tax officials The tax collector take the bribe from the people. ask someone.
More or less those initiatives made some progress. Agriculture. In most cases. The tax system should be simple and plain so that everyone can easily understand it. more specifically. Boarding the tax base so that everyone can makes some contribution to pay their tax. non-farm activity. Contribute the most to the development of the country. Keeping tax rate as low as possible so that all kinds of people can contribute In the past 2yars when the caretaker government is their so much initiative was taken to involve people to pay tax. To avoid corruption taxation should be simple.01% of the GDP. Take steps to collect the direct Tax. 5 . still remains an untapped source of revenue to the government. Utilizing the best of the income tax. It accounts for only 0.How the National Board of Revenue could handle this problem. We see that from different part so many people contribute by paying tax. This sector accounted for more than 50% of total direct tax revenue in the early sixties. land revenue tax and tax on agricultural income. The assessment of tax must be simplified. Upgrade the Tariff system. but now agricultural income tax is very negligible. Take morale steps and introducing the new methodology for the development of the officer. Minimizing the regulation and the paper work for taxpayers. and those two years the NBR generate most of the revenues in the history of Bangladesh. Reducing the corruption in the government officer. Direct taxation on agricultural sector normally takes two forms. income from agriculture does not exceed the ceiling of non-taxable limit primarily due to subdivision and fragmentation of holdings for which income is distributed to different hands. although the average contribution of agriculture to the GDP is 35%.
It will be useless to imposed tax which is too widespread and difficult to administer. to suit the changing requirements of the economy and of the treasury. 6 . Finally but not the least. if e look the year 2007-2008 those year a lots of development work happened and people see all the development and get benefit from those work. Reducing the system of tax payment. It is important that the cost of collection should be as small as possible. Government should proper use the amount they get from tax. Train the employees and improve them morally and motivate them for doing good thing to the people. without undue delay. both with respect to its coverage and rates. So through mobilizing the rules and regulation it should control the cost of tax collection. It should be possible for the authorities. improve the infrastructure of our country. So. Tax is a question of ethics it is quite impossible for the tax authorities to go door to door and inquiry about the tax payment of people. the people should be ethical and they should pay their tax correctly from their earnings. Every tax has a cost of collection. making such a way that any person can gives his tax by in a day. to revise the tax structure.
This canon is not to be followed in the tax system of Bangladesh. Canon of convenience: It should be convenient to pay tax. 3. 4. In addition these canons can be used to solve those problems. the quantity to be paid. This step is not followed in tax system of Bangladesh properly. A person who starts to get earning money he or she has to give tax on that moment. The time of payment. 5. 1. the manner of payment. Canon of certainty: This canon describe that the tax which each individual is bound to pay or to be certain and not arbitrary. Canon of equality: In these cannon it imposes of tax according to ability to pay. 2. It is important that the cost of collection should be as small as possible. Canon of productivity: According to this principle.APPLICATION OF CANNON IN THE TAX SYSTEM OF BANGLADEH There are so many tax system remains in Bangladesh. Canon of simplicity: 7 . Canon of economy: Every tax has a tax of collection. It will be useless to imposed tax which is too widespread and difficult to administer. So under these circumstances this is usually followed in the tax system of Bangladesh. So many corruptions are seen here. all ought to be clear and playing to the contributor and to every other person. some are not. 6. Among this tax system some cannons are followed. the tax system should be able to yield enough revenue for the treasury and the Government should not be forced to resort to deficit financing.
To avoid corruption taxation should be simple. Our country's big giant corporation they also evade tax. canon of diversity also gives importance to adequate collection of tax through diversification. it is a cumulative problem for our country. Again to the some extent there are also people false. Canon of diversity: In line of productivity. then any reduction in tax revenue on account of any one is likely to be very small on total tax revenue. So we should improve our ethics and moral. 7. whether we like it or not”. Such a system breeds a lot of uncertainty for the treasury. The assessment of tax must be simplified. and we should learn that “if there is any rule imposed on us we have to obtain it. too much multiplicity of taxes is also to be avoided. 8 .The tax system should be simple and plain so that every one can easily understand it. Conclusion From the above we come to learn that there are lot of problems in NBR that's why people are discourages to give their tax. However. On the other hand. if the tax revenue comes from diversified sources.
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